2016-12-01 00:00:00 Insurance and Benefits English Learn how to calculate employment insurance premiums. Review the Canada Revenue Agency's rate for EI premiums. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2016/12/Two-People-Doing-a-Calculation.jpg Learn How to Calculate Employment Insurance Premiums

Learn How to Calculate Employment Insurance Premiums

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As an employer, you have to submit Employment Insurance premiums on behalf of your employees. As of 2017, the EI rate is 1.63 percent. To calculate how much to withhold from your employee’s paycheque, multiply their payment by 0.0163. For example, if your employee’s pay is $1,000, his EI premium is $16.30.

You also have to remit a payment to the Canada Revenue Agency on behalf of your employee. To calculate your payment, multiply the employee’s EI premium by 1.4. On a $1,000 paycheque, that makes your payment $22.82.

As of 2017, you only have to remit EI premiums on the first $51,300 of income. If your employee earns over that threshold, you don’t have to withhold or pay EI premiums on the excess amounts.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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